Newsletter No. 52
Good morning,
It is Thursday, February 8, 2024. For yet another week, there is a ton of interesting oil and gas news. While I’d love to cover it all, our newsletter space is limited, so I am just going to jump right in with some of the highlights.
This Week’s Headlines
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Sad Day for Our Military
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Equinor Chief Urges Local Oil Production for Energy Security
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Touching Base with Dealmakers at NAPE
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Woodside and Santos Terminate $80 Billion Merger Talks Due to Valuation Dispute
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EPA Rejects Colorado Oil Permits Over Ozone Concerns
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Acquisition to Watch: Silver Hill Energy Partners Enters Bakken with Liberty Acquisition
Sad Day for Our Military
We are deeply saddened and extend our heartfelt condolences to the families of the five Marines who lost their lives in the tragic helicopter crash. The helicopter was found on Wednesday morning in the snow-covered California mountains. The Marines were assigned to Marine Heavy Helicopter Squadron 361, part of the 3rd Marine Aircraft Wing, Our thoughts and prayers are with the grieving families during this incredibly difficult time. The loss of these dedicated servicemen is a profound tragedy, and we share in the sorrow of their loved ones. May they find strength and support in the midst of their grief, and may the memories of these brave Marines be a source of comfort and inspiration. Our gratitude goes out to them for their service and sacrifice, and we stand in solidarity with the military community as they mourn the loss of their comrades.
Equinor Chief Urges Local Oil Production for Energy Security
Equinor’s CEO, Anders Operdal, calls for countries to produce oil and gas locally to enhance energy security, responding to disruptions caused by the Russia-Ukraine conflict. Defending Equinor’s investment in the Rosebank oil field, Operdal emphasizes a balanced transition to renewables. Critics push for a quicker shift to renewables to stabilize energy prices and reduce reliance on international markets.
Touching Base with Dealmakers at NAPE
This week, King is participating in the NAPE Expo in Houston. We are currently at the Expo and I wanted to bring all of you inside this massive conference. One standout was the Governors Forum: Backing American Energy. Texas Governor Abbott and Oklahoma Governor Stitt shared insights on all things energy in a panel moderated by Jacki Deason.
This discussion provided a unique perspective from sitting governors of major energy-producing states. After the forum, there was a concert featuring country singers Wade Bowen and Randy Rogers. This was part of the NAPE Charities Celebration honoring our military heroes. The Expo reinforces NAPE’s reputation as the top marketplace for energy connections, making it a rewarding experience.
Woodside and Santos Terminate $80 Billion Merger Talks Due to Valuation Dispute
Woodside Energy and Santos have officially concluded discussions for a potential $80 billion global oil and gas giant merger. The decision, driven by an inability to agree on valuation, led to a 5% drop in Santos shares and a 2% rise in Woodside’s stock. Woodside emphasized its commitment to shareholder value, and despite almost two months of negotiations, no concrete bid emerged. The breakdown highlights investor concerns about paying a premium for Santos and underscores Woodside’s dedication to financial discipline.
EPA Rejects Colorado Oil Permits Over Ozone Concerns
The EPA has rejected four air pollution permits for oil and gas sites in Colorado’s Weld County, citing the need for rewriting to prevent ozone-causing chemicals from reaching the atmosphere. Environmental advocates see this as a potential shift toward more rigorous testing instead of predictions for thousands of oil and gas permits. The decision questions Colorado’s monitoring requirements, signaling a push for increased scrutiny of emissions in the state’s oil and gas industry.
Acquisition to Watch
Silver Hill Energy Partners Enters Bakken with Liberty Acquisition
Dallas-based Silver Hill Energy Partners is acquiring North Dakota oil and gas assets from Liberty Resources II, along with a 100% interest in Liberty Midstream Solutions. The deal, expected to close on March 14, includes over 300 drilling locations, 84,000 net acres, and provides approximately 16 million barrels of oil equivalent in PDP reserves. The acquisition also features a midstream system with gas and water gathering lines, a gas processing plant, and disposal wells. Silver Hill plans to fund the purchase through equity and senior bank debt, using it as a starting point for future growth in the Bakken.
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Thank you for your continued support, and if you have any questions for myself or any member of the King team, please don’t hesitate to reach out.
All the best,
Jay
